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Freeport-McMoRan Reports Third-Quarter And Nine-Month 2017 Results

Posted: 09.12.2017

Freeport-McMoRan Reports Third-Quarter And Nine-Month 2017 Results

10/25/17

PHOENIX--(BUSINESS WIRE)-- Freeport-McMoRan Inc. (NYSE: FCX):

  • Net income attributable to common stock totaled $280 million, $0.19 per share, for third-quarter 2017. After adjusting for net charges of $212 million, $0.15 per share, third-quarter 2017 adjusted net income attributable to common stock totaled $492 million, $0.34 per share.
  • Consolidated sales totaled 932 million pounds of copper, 355 thousand ounces of gold and 22 million pounds of molybdenum for third-quarter 2017.
  • Consolidated sales for the year 2017 are expected to approximate 3.7 billion pounds of copper, 1.6 million ounces of gold and 94 million pounds of molybdenum, including 1.0 billion pounds of copper, 625 thousand ounces of gold and 23 million pounds of molybdenum for fourth-quarter 2017.
  • Average realized prices were $2.94 per pound for copper, $1,290 per ounce for gold and $9.22 per pound for molybdenum for third-quarter 2017.
  • Average unit net cash costs were $1.21 per pound of copper for third-quarter 2017 and are expected to average $1.19 per pound of copper for the year 2017.
  • Operating cash flows totaled $1.2 billion (including $45 million in working capital sources and changes in tax payments) for third-quarter 2017 and $3.0 billion (including $0.4 billion in working capital sources and changes in tax payments) for the first nine months of 2017. Based on current sales volume and cost estimates, and assuming average prices of $3.00 per pound for copper, $1,300 per ounce for gold and $8.00 per pound for molybdenum for fourth-quarter 2017, operating cash flows for the year 2017 are expected to approximate $4.3 billion (including $0.5 billion in working capital sources and changes in tax payments).
  • Capital expenditures totaled $308 million (including approximately $200 million for major mining projects) for third-quarter 2017 and $1.0 billion for the first nine months of 2017 (including $0.6 billionfor major mining projects). Capital expenditures for the year 2017 are expected to approximate $1.5 billion, including $0.7 billion for underground development activities in the Grasberg minerals district in Indonesia.
  • In September 2017, FCX redeemed $543 million of senior notes, resulting in cash interest savings of approximately $35 million per annum.
  • At September 30, 2017, consolidated cash totaled $5.0 billion and consolidated debt totaled $14.8 billion, compared with $4.2 billion of consolidated cash and $16.0 billion of consolidated debt at December 31, 2016. FCX had no borrowings and $3.5 billion available under its revolving credit facility at September 30, 2017.

Freeport-McMoRan Inc. (NYSE: FCX) reported net income attributable to common stock of $280 million($0.19 per share) for third-quarter 2017 and $776 million ($0.53 per share) for the first nine months of 2017, compared with net income attributable to common stock of $217 million ($0.16 per share) for third-quarter 2016 and a net loss attributable to common stock of $4.4 billion ($3.45 per share) for the first nine months of 2016. After adjusting for net charges of $212 million ($0.15 per share) primarily related to accruals for Peruvian government claims associated with disputed royalty matters, adjusted net income attributable to common stock totaled $492 million ($0.34 per share) for third-quarter 2017. Refer to the supplemental schedule, "Adjusted Net Income (Loss)," on page VII, which is available on FCX's website, "fcx.com," for additional information.

Richard C. Adkerson, President and Chief Executive Officer, said, "We are pleased to report strong quarterly results throughout our global operations and a positive outlook for future results. Our focus on cost management combined with free cash flow generation have enabled us to continue to strengthen our balance sheet and successfully execute our strategy. Our shareholders are well positioned to benefit from our highly attractive portfolio of copper assets and improving copper market conditions. We are encouraged by continued progress in our active negotiations with the Indonesian government regarding our long-term operating rights in Indonesia and remain focused on managing our long-term business for the benefit of shareholders."

SUMMARY FINANCIAL DATA



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